Loot Crate Files For Bankruptcy After Layoffs

The company claims "daily operations will continue as usual."

Loot Crate, the self-proclaimed "world leader in fan-subscription boxes," has filed for bankruptcy following reports of layoffs at the company.

The announcement came via an overnight press release just days after the company reportedly laid off dozens of employees, according to a report from the LA Times, apparently without severance of any kind. This comes after the company had already shuttered a warehouse and laid off almost 150 workers this past May, but none of that stopped LootCrate's CEO Chris Davies from saying "We are very pleased with our progress from an operational efficiency standpoint," continuing that "The company still faces liquidity issues."

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"Liquidity issues," according to the company's bankruptcy filing apparently include upwards of $30 million in trade debt and almost $6 million in taxes owed, on top of the nearly $20 million worth of boxes that its customers have paid for but have not yet received.

"Daily operations will continue as usual," Davis said. "Crates will be shipped, and all aspects of the business will go on as before the Chapter 11 filing," adding that their (remaining) employees "will continue to be paid as usual during this transaction." IGN has reached out for comment on the layoffs and bankruptcy filing but has not received a response at the time of publishing.

JR is a Senior Editor at IGN and really hopes stories like this drive more employees to organize themselves. He regularly beats that drum (along with the fun gaming/D&D one) on Twitter.